All I have to add to this excellent and honest assement is that at LEAST WE HAVE CHINA'S GOVERNMENT TO THANK FOR BEING HONEST AND CANDID WITH US ABOUT THE CURRENT TRUE STATE OF AFFAIRS.
Carry on.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a721bsK5OmLE
China Sees âGrimâ Job Market, Deeper Impact From Global Crisis
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By Bloomberg News
June 3 (Bloomberg) -- Chinaâs government said unemployment is worsening, a quick rebound in trade is becoming less likely, and the nation is yet to feel the full effects of a global slump.
The foundations for an economic recovery arenât solid, the State Council said in a statement on a government Web site today. Trade faces âunprecedented difficulties,â Vice Commerce Minister Zhong Shan said separately.
Falling exports dragged Chinaâs economic growth to the slowest pace in almost a decade in the first quarter as the government rolled out a 4 trillion yuan ($586 billion) stimulus package. The Shanghai Composite Index has climbed 52 percent this year as investors bet that Premier Wen Jiabao can engineer a recovery in the worldâs third-biggest economy.
âRising unemployment, if not properly addressed, could be a time-bomb in Chinaâs economy,â said Tao Dong, Hong Kong-based chief Asia economist at Credit Suisse Group AG. Still, airing problems may signal that the government is confident that itâs in control of the situation, Tao said.
China will announce more measures to help labor-intensive industries, the State Council said, describing the job market as âgrim,â with registered unemployment climbing and new jobs shrinking compared with a year earlier. The registered urban jobless rate was 4.3 percent at the end of March, a figure that doesnât account for unemployed migrant workers.
Exports and imports are set to decline in the first half and the outlook for the rest of the year is not optimistic, Zhong said in a statement about export credit insurance posted on the commerce ministryâs Web site. He didnât specify why a speedy recovery in trade is becoming less likely.
Shipments Plunge
The World Trade Organization in March predicted a 9 percent drop in global commerce this year.
China, the worldâs second-biggest exporter, has cut export taxes, boosted credit and insurance for overseas sales and pledged to keep its currency stable as manufacturers weather the collapse in global demand. Overseas sales plunged 22.6 percent in April from a year earlier, the sixth straight monthly decline.
Zhongâs comments contrast with signs that the outlook for shipments is improving. An index of export orders increased to 50.1 in May, the first expansion in 11 months, a government backed manufacturing index showed.
âChinaâs exports may start to grow as early as January after the major economies such as the U.S. and Japan gradually recover later this year,â said Xing Ziqiang, a Beijing-based economist at China International Capital Corp.
Falling exports are the biggest challenge for Chinaâs economy, the State Council said on May 27.
For Related News and Information: Most-read stories on China: MNI CHINA 1W <GO> Most-read China economy stories: TNI CHECO MOSTREAD BN <GO> For top economic news: TOP ECO <GO>
Last Updated: June 3, 2009 06:58 EDT
Carry on.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a721bsK5OmLE
China Sees âGrimâ Job Market, Deeper Impact From Global Crisis
Share | Email | Print | A A A
By Bloomberg News
June 3 (Bloomberg) -- Chinaâs government said unemployment is worsening, a quick rebound in trade is becoming less likely, and the nation is yet to feel the full effects of a global slump.
The foundations for an economic recovery arenât solid, the State Council said in a statement on a government Web site today. Trade faces âunprecedented difficulties,â Vice Commerce Minister Zhong Shan said separately.
Falling exports dragged Chinaâs economic growth to the slowest pace in almost a decade in the first quarter as the government rolled out a 4 trillion yuan ($586 billion) stimulus package. The Shanghai Composite Index has climbed 52 percent this year as investors bet that Premier Wen Jiabao can engineer a recovery in the worldâs third-biggest economy.
âRising unemployment, if not properly addressed, could be a time-bomb in Chinaâs economy,â said Tao Dong, Hong Kong-based chief Asia economist at Credit Suisse Group AG. Still, airing problems may signal that the government is confident that itâs in control of the situation, Tao said.
China will announce more measures to help labor-intensive industries, the State Council said, describing the job market as âgrim,â with registered unemployment climbing and new jobs shrinking compared with a year earlier. The registered urban jobless rate was 4.3 percent at the end of March, a figure that doesnât account for unemployed migrant workers.
Exports and imports are set to decline in the first half and the outlook for the rest of the year is not optimistic, Zhong said in a statement about export credit insurance posted on the commerce ministryâs Web site. He didnât specify why a speedy recovery in trade is becoming less likely.
Shipments Plunge
The World Trade Organization in March predicted a 9 percent drop in global commerce this year.
China, the worldâs second-biggest exporter, has cut export taxes, boosted credit and insurance for overseas sales and pledged to keep its currency stable as manufacturers weather the collapse in global demand. Overseas sales plunged 22.6 percent in April from a year earlier, the sixth straight monthly decline.
Zhongâs comments contrast with signs that the outlook for shipments is improving. An index of export orders increased to 50.1 in May, the first expansion in 11 months, a government backed manufacturing index showed.
âChinaâs exports may start to grow as early as January after the major economies such as the U.S. and Japan gradually recover later this year,â said Xing Ziqiang, a Beijing-based economist at China International Capital Corp.
Falling exports are the biggest challenge for Chinaâs economy, the State Council said on May 27.
For Related News and Information: Most-read stories on China: MNI CHINA 1W <GO> Most-read China economy stories: TNI CHECO MOSTREAD BN <GO> For top economic news: TOP ECO <GO>
Last Updated: June 3, 2009 06:58 EDT
